The top private life insurers are readjusting rates for term insurance by the end of the fourth quarter. According to industry experts Reinsurance companies have taken firm stances with regard to the latest Omicron variation, adding to the uncertainty.
It’s the 2nd round of price hikes during the current fiscal year, which the industry of life insurance is experiencing. Based on the information provided by distributors ICICI Prudential Life Insurance and HDFC Life Insurance have sounded their alarms about the possibility for an up-grade during the fourth quarter.HDFC Life Insurance chief financial officer Niraj Shah said protection prices in India are less than in the developed nations with better medical facilities and higher life duration.
“Historical growth rates in India have been less than inflation increases. We can expect rates and underwriting standards to change in line with increasing coverage in demographics and geographic areas as time passes,” said Shah. IndiaFirst Life Insurance MD & CEO R M Vishakha said, “Global reinsurers consider business factors when revising rates. Domestic insurers rely on their backing to provide insurance and must increase rates every time rates for reinsurance are updated.”
HDFC Life is engaging with reinsurers to improve underwriting practices and implement new technology like deep-learning models for underwriting and take on the protection risk by establishing a Group Platform (Credit Life) as well as the business itself that will spread risk more equally.
